Fineqia AG, a digital asset business, has partnered with crypto custodian Copper to offer custody solutions for its exchange-traded note (ETN) business. The company believes that this move will enhance the reliability and transparency of its products.
According to the agreement, Copper will safeguard the underlying assets held in Fineqia’s ETNs, which include the Fineqia FTSE Cardano Enhanced Yield ETN. This product provides direct exposure to Cardano (ADA) and had over $45 million in assets under management as of January 29.
The Cardano ETN began trading on the Vienna Stock Exchange approximately 10 months after Fineqia AG received initial approval. Fineqia’s prospectus allows its ETNs to hold other cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Tron (TRX).
Copper, a London-based custodian, is supported by the British multinational bank Barclays. This partnership highlights the increasing significance of custodial services for asset managers looking to attract institutional capital to the crypto space. Fineqia aims to protect customer assets from theft, loss, or unauthorized access through its partnership with Copper.
Cointelegraph reached out to Fineqia AG for comments, but no immediate response was received.
There is a growing demand for institutional custody in the crypto market, especially in North America. Crypto firms are rushing to fill this gap in the qualified custodian market. Infrastructure providers Taurus and Fireblocks expanded their custodial businesses in the region last year, joining established players like Kraken and Coinbase, who provide custody services for institutional clients.
In September, US crypto custodian BitGo established a regulated platform for custody services for Web3 protocols. In December, Crypto.com announced the launch of its US institutional custody service. This decision was influenced by the election of Donald Trump and the possibility of improved regulations in the United States. The exchange also dropped its lawsuit against the Securities and Exchange Commission, expressing its intention to work with the incoming administration on a regulatory framework for the industry.
Coinbase has been urging regulators to clarify whether financial institutions are permitted to serve crypto businesses. According to Bloomberg, the exchange requested the Federal Deposit Insurance Corporation to provide clarification on whether chartered banks can offer crypto custody and execution services.